Tobacco sends $1 trillion up in smoke every year

Tobacco-control policies such as higher taxes and price increase can generate significant government revenues for health and development work, states a new report by the World Health Organisation (WHO) and the US’ National Cancer Institute. Such measures can also reduce tobacco use and burden of killer diseases like cancer and heart ailments.Sushmi Dey | TNN | January 11, 2017, 12:52 IST

NEW DELHI: Tobacco-control policies such as higher taxes and price increase can generate significant government revenues for health and development work, states a new report by the World Health Organisation (WHO) and the US’ National Cancer Institute. Such measures can also reduce tobacco use and burden of killer diseases like cancer and heart ailments.

According to the report, the global annual excise revenues from cigarettes could increase by 47% if all countries raised excise tax by about $0.80 (approx. Rs 55, as on Wednesday) per pack. Additionally, the tax increase would raise cigarette retail prices on average by 42%, leading to a 9% decline in smoking rates and up to 66 million fewer adult smokers, the report says.

In 2013-2014, global tobacco excise taxes generated nearly $269 billion in government revenues. Of this, less than $1 billion was invested in tobacco control.

In India, the government has taken several measures in the past few years to control tobacco consumption.

Apart from increased taxes, the government has also managed, with intervention from the judiciary, to implement a pictorial warning on 85% of a tobacco product packet’s surface area despite strong resistance from the tobacco industry. Estimates show around 35% of adults consume tobacco in India, while over 5,500 youths start use every day.

The report has pegged the global socio-economic burden of tobacco consumption at over $1 trillion annually in healthcare expenditures and lost productivity. Currently, around 6 million people die annually as a result of tobacco use, most in developing countries. According to the report, the number of tobacco-related deaths is projected to increase to about 8 million annually by 2030.